The Dayton Corporation began the current year with a retained earnings balance of $16,146. During the year, the company corrected an error made in the prior year, which was a failure to record a depreciation expense of $3,874 on equipment. Also, during the current year, the company earned net income of $13,201 and declared cash dividends of $6,994. Compute the year end retained earnings balance.

Select the correct answer.

$18,479

$22,353

$40,215

$16,146